How can cities build an entrepreneurial ecosystem that drives sustainable, inclusive, local growth? Paris has some answers.
Since the 1990s, Paris has transformed its entrepreneurial landscape. From a few business incubators, the city has grown into a global innovation hub. Paris&Co – Paris’ innovation agency – has been central to that shift.
Paris, a capital of entrepreneurship
Paris is thriving. It is now home to 25,000 startups in emerging sectors, creating more than one million jobs and a growing pipeline of unicorns. Momentum was fueled by the French Tech label, streamlined administrative processes, and attractive tax incentives. In 2024 alone, €3.8 billion in investment flowed into the city, with over one-third targeting artificial intelligence – securing Paris’s position as the leading European hub and 5th worldwide in this domain. Iconic companies such as Mistral AI, Hugging Face, and Owkin emerged from this fertile ecosystem, which combines top talent, cutting-edge infrastructure, and ambitious public policies.
Paris&Co: Combining a social and an economic mission
Paris&Co is now at the core of this ecosystem. It was founded in 1996 by the City of Paris and the Chamber of Commerce and Industry, to stimulate entrepreneurship, foster employment, and guide regional transitions.
Today, with a team of 46, the agency champions local, collaborative innovation. Working across sectors – from sustainable cities and fintech to health and creative industries – it acts as a trusted third party connecting private companies, public institutions, and entrepreneurs.
Its impact has been impressive: in 2024, it supported over 400 projects through incubation, experimentation, or social innovation programs, in collaboration with more than 100 partners. Within just six months, startups in the incubation programs raised over €600 million. The impact on employment is also significant: the 320 startups incubated in 2024 represented 2,528 jobs, with an average of 7.9 full-time equivalents (FTEs) per company.
360° support for startups
Paris&Co’s incubation model is a proven example of territory-rooted support. Through sector-specific expertise and tailored guidance, the agency helps startups at every stage – from ideation to fundraising.
Startups in selected sectors benefit from customised programs including access to a network of experts, partnerships, visibility, and low-price office space provided through social housing partners. The support includes weekly workshops, mentorship, personalised coaching, and strategic guidance, lasting 1 to 3 years based on each startup’s needs.
The model promotes collaboration through the Paris&Co Club, which brings together public and private actors to address innovation challenges. Partners such as Orange, Engie, Safran, BNP Paribas, and the Ministry of the Economy demonstrate the agency’s ability to unite a committed ecosystem focused on practical, responsible innovation.
The results speak for themselves. Key success stories include Electra which raised €304 million for their business in fast charging for electric vehicles, Deepki which now employs 400 people across six countries and Too Good To Go, the food waste reduction app which has saved over 350 million meals in 19 countries.
Using the city as a lab
Paris&Co also works on the transformation of urban spaces, collaborating with public authorities and innovators.
Since 2022, the agency has led the Metropolitan Innovation Districts (QMI) project with the Greater Paris Metropolis – Europe’s largest urban experimentation program. These open-air labs test real-world solutions: eco-designed street furniture (PURPL), mobility monitoring (Ecoflow), cargo bikes for public employees (Pelican Cycle), and solar self-consumption (Faradae).
By 2026, 10 districts and over 75 prototypes will be implemented to improve the environment and urban mobility – using a rigorous, collaborative methodology that involves elected officials, citizens, experts, and entrepreneurs.
Going global
The Paris&Co model is now extending well beyond the Île-de-France region. In 2021, the agency partnered with Wiki Start Up, Tunisia’s first private incubator, to adapt innovation strategies to local contexts through hackathons, sector programs, and open innovation strategies.
In 2024, the agency turned to Japan: in Aichi Prefecture, Paris&Co inspired the creation of the AiSIA Sports Innovation Consortium, which brings together public authorities, universities, and companies like Nagoya Grampus football club. The aim: develop an accelerator for sports and immersive technologies (VR, AI, motion capture) through pilot projects.
Lessons for other cities
Cities looking to replicate its high-impact model can draw five interlinked lessons. First, set explicit goals that reflect local priorities and strengths and embed them in agile governance that brings the key public and private actors to the table. Second, broaden the funding mix so that municipal grants sit alongside corporate partnerships and fee-based services, to ensure long-term viability while preserving the agency’s neutrality. Third, focus resources on a handful of strategic sectors where economic, environmental and social dividends overlap, and create permanent platforms to keep networks and conversations alive – including clubs, forums and liaison committees. Fourth, use the city itself as a laboratory, opening the streets to citizen centred experimentation and measuring results rigorously so that evidence feeds back into policy. Finally, look outward: sustained exchanges with other regions and countries help refine methods and unlock new market opportunities, reinforcing impact at home and abroad.
Going beyond the basics to harness innovation
Paris has succeeded by going beyond the basics. It supports a full ecosystem to harness innovation as a lever for local development. By rallying businesses, institutions, entrepreneurs, and citizens around tangible projects, the agency helps shape a more resilient, inclusive, and attractive metropolis. Its journey has shown that when innovation is anchored in place and purpose, it can power not just startups but the future of entire cities.
To find out more about Paris&Co : https://www.parisandco.com/
